FMI joins coalition urging Congress to extend Work Opportunity Tax Credit

FMI, The Food Industry Association, has joined 473 other organizations and employers in a coalition letter urging Congress to extend the Work Opportunity Tax Credit (WOTC). The group is calling on lawmakers to act during the post-election lame-duck session to preserve the federal program, which provides tax incentives to employers who hire individuals facing employment barriers.

The WOTC, established in 1996, allows eligible employers to claim federal income tax credits for hiring workers from designated groups, including veterans, recipients of Supplemental Nutrition Assistance Program (SNAP) benefits, formerly incarcerated individuals, and certain long-term unemployed workers. For the food industry, the program serves as a workforce development tool to recruit workers who might otherwise face difficulty entering the workforce.

The coalition is supporting the bipartisan Improve and Enhance the Work Opportunity Tax Credit Act (H.R. 6231/S. 3265). This legislation would extend the credit retroactively from January 1, 2026, through December 31, 2030, and increase the credit rate from 40 percent to 50 percent of qualified wages. Other proposed changes include indexing the credit for inflation, adding a credit for employees completing at least 400 hours of service, and extending eligibility to employers hiring spouses of currently serving military personnel.